Bitcoin Shines Amid Flurry of Positive News

Hola folks!

The past week has been good for the crypto market as the December rally continues, fueled by increasing institutional interest. Bitcoin continues to march ahead, scaling new highs. Ethereum and XRP also had a great week, gaining momentum over positive developments. 

Today’s newsletter highlights the major crypto and economic developments in the past week and how these changes can impact the market in the coming days. Read on to learn more.

Bitcoin’s relentless march upward shattered records early Monday, peaking above $106,000 before retracing to $104,500. As December’s seasonal rally continues, traders now eye the pivotal $120,000 mark. 

A surge in institutional interest — including billion-dollar purchases from Riot Platforms and MicroStrategy — and speculative chatter about U.S. President-elect Donald Trump establishing a federal Bitcoin reserve have fueled this extraordinary ascent. Meanwhile, ETF inflows have surged as U.S. policy optimism reignites investor confidence.

Amid this crypto euphoria, regulatory and macroeconomic currents are shifting rapidly. The U.S. Federal Reserve is poised for a widely expected 25-basis-point rate cut, marking a cumulative 100-basis-point easing since September. However, cautious Fed commentary could temper bullish sentiment. 

Beyond Bitcoin, ecosystem dynamics are evolving fast. Ripple’s CTO David Schwartz warned of potential supply squeezes for its soon-to-launch USD-pegged stablecoin, sparking speculation-driven volatility. He noted that pre-market bids have already inflated its perceived value. 

Meanwhile, developer activity reports show Asia surpassing North America in crypto development, while Ethereum’s liquid restaking total value locked (TVL) skyrocketed from $284M to $17B in 2024. Even as Kraken faces regulatory fines in Australia, whispers of OpenSea's potential token airdrop keep NFT enthusiasts buzzing. The crypto landscape, it seems, is charging into the new year with unstoppable momentum.

Donald Trump’s World Liberty Financial went on a crypto buying spree in December, making nearly $45 million in acquisitions, including significant stakes in Ether, Coinbase Wrapped BTC, and niche tokens like Ondo and Ethena.

The wallet's notable purchases include $2 million each of Chainlink and Aave and a $250,000 Ondo buy just hours after acquiring $500,000 of Ethena.

Weekly price movement: 

• BTC $104,654 ⏫ 6.11% 

• ETH $3,949 ⏫ 2.26% 

• AAVE $379.08 ⏫ 44.56%

• ONDO $2.05  ⏫ 33.38% 

(All data here as of 3.00 pm, 16 December 2024)

Before we conclude, here’s a quick look at some important news from around the crypto world.

• Ripple’s U.S. dollar stablecoin RLUSD has secured final approval from the New York State Department of Financial Services, according to CEO Brad Garlinghouse. Read more here.

• The 12 U.S. spot Bitcoin ETFs have surpassed 500,000 BTC in cumulative net inflows less than a year after trading began. Since their January launch, the ETFs have absorbed over 2.5% of Bitcoin’s 19.8 million BTC circulating supply. Read more here.

That’s it for now. Thanks for sticking around.

See you later, folks! 👋

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